[From Russkia Vedomosti, No. 260, Nov. 11, (Nov. 24,) 1914, P. 3.]
_The Russian Ministry of Commerce and Industry has lately
published the preliminary results of an inquiry into the
changes in industry which have occurred during the first two
and one-half months of the war, Aug. 1 to Oct. 14, 1914._
Altogether 8,550 of the largest industrial establishments, excepting
those of Poland, have been investigated. These employ 1,602,000 workers.
Of those investigated 502 factories employing 46,586 employes had to be
closed down entirely, while 1,034 establishments with 435,000
wage-earners have cut down their working force to 319,000. Thus about
one-third of the total industrial wage-earning force has felt the
effects of the war either through total discharge or through diminished
output.
The lack of trained labor power and the failure to obtain funds have
affected 222 establishments with 58,000 workers. Lack of funds has been
very severely felt in the Baltic provinces, (there, especially, in the
chemical industry,) affecting fourteen establishments with 15,701
workers. Altogether 132 establishments with 50,000 employes have cut
down their operations, and of these 30 per cent. employing 15,000
workers belonged to the chemical industry. Also twenty establishments of
the metal working (fine machinery) industry with 11,000 employes had to
curtail their volume of business. In other industries the lack of labor
supply has not been felt. Evidently only the industries requiring highly
qualified labor have suffered from this cause. The shortage of fuel
forced 108 establishments with 49,000 workers to diminish their output,
and eleven establishments with 3,000 workers had to close down
altogether.
The lack of fuel was very severely felt in the provinces of Petrograd
and in the Baltic, owing to the stoppage of the importation of British
coal. Of all establishments closed down for this reason, about 60 per
cent. belong to the provinces of Petrograd, Livland, and Estland.
In other regions this want was felt less severely. The output of coal in
the Donetz basin and of naphtha in the Baku region has increased, and
the decreased demand for fuel owing to the diminished production has
somewhat lowered the prices of naphtha. Thus in 1913 the average monthly
price of light naphtha in Balakhany was 42 copecks per pood, (two-thirds
of a cent per pound,) but in September, 1914, it was 36, and on Nov. 5
it fell to 25-26 copecks per pood, (13 cents per thirty-six pounds--a
little over 1-3 cent per pound.)
The main difficulty in the fuel supply lies, however, in the inadequate
transportation facilities.
The next obstacle in the way of normal development of industry is the
lack of transportation facilities. This cause alone forced 223 factories
with 128,000 workers to curtail their output, and fifty-six factories
with 5,300 workers stopped production.
But the most disastrous effect upon the Russian industry has been
produced by the diminished demand and by the lack of raw materials. For
lack of market, 671 establishments with 219,000 workers reduced their
output. The greatest sufferers have been the building trades and the
industries connected therewith--structural iron, cement, (concrete,)
brickmaking, &c.
The railroads have suffered greatly through the cancellation of
registered orders and by the stoppage of further orders from Poland,
also by the military mobilization.
During the month of August, 1914, the gross earnings of the Russian
railroads, both State and private, were only half of their gross
earnings for August the year before.
The unexpected prohibition of alcoholic beverages has almost ruined the
liquor industry.
For lack of demand 83 textile factories with 95,000 employes have
reduced their output. The lack of raw material forced 103 cotton mills
with 188,000 weavers to cut down their output. This makes 40 per cent.
of the total cotton mills of Russia. Similar reductions have occurred in
the silk, woolen, linen, and hemp industries.
The Ministry has withheld the data as to the exact nature of the raw
materials wanting, but it may be surmised that raw cotton and dyestuffs
are among the chief items.
Among the remedies suggested are better credit facilities and the
resumption of interrupted intercourse with friendly and neutral powers
for the securing of raw material.